NYSE$LW
Lamb Weston Holdings Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Lamb Weston's fourth quarter results were impacted by the COVID-19 pandemic, with net sales and diluted EPS declining.
Lamb Weston's Q4 2020 net sales decreased by 16% to $847 million, and net income resulted in a loss of $2 million, a decline of $112 million. Diluted EPS also declined to a loss of $0.01 from $0.75. These results were significantly impacted by costs related to the COVID-19 pandemic.
- Net sales declined 16% to $847 million.
- Income from operations declined 79% to $31 million, including $58 million of net COVID-19 related costs.
- Net income declined $112 million to a loss of $2 million.
- Diluted EPS declined $0.76 to a loss of $0.01 from $0.75.
Headline financials
Revenue & EPS history
Lamb Weston · Revenue · Quarterly
$847M
Revenue by segment
Lamb Weston · $1.67B total across 2 segments · Q1 2024
- North America$1.14B—68.2%
- International$530M—31.8%
Forward guidance
Due to the unpredictable effect of the COVID-19 pandemic on the global economy, the company does not believe it can reasonably forecast frozen potato product demand for fiscal 2021.
Tailwinds
- Shipments to large chain restaurant customers, which are primarily composed of quick service restaurants (“QSR”) that have relied on drive-thru traffic to support sales, have recovered to 85 to 90 percent of prior-year levels during the most recent weeks of the quarter.
- Shipments to customers served by the Company’s Foodservice segment have gradually improved during the quarter, and have recovered to 70 to 75 percent of prior-year levels during the most recent weeks as states began to ease on-premises dining restrictions.
- Shipments to retail customers during the most recent weeks are trending up 5 to 10 percent compared with the prior year period, as consumer trends to increase food-at-home purchases begin to normalize.
- Shipments-to-date by the Company’s joint venture, Lamb-Weston/Meijer v.o.f. (“LWM”), are approximately 75 percent of prior-year levels, and have gradually improved as the quarter progressed as countries began to ease on-premises dining restrictions.
- Shipments-to-date are approximately 85 percent of prior-year levels, and have improved from nearly 80 percent of prior-year levels at the end of May to more than 95 percent of prior-year levels in the most recent weeks as the country continues to ease on-premises dining restrictions and as consumers increasingly become more comfortable with dining on-premises.
Headwinds
- The Company believes these improvements may become less pronounced, cease or reverse as the spread of COVID-19 continues and states reinstate or otherwise postpone on-premises dining restrictions.
- A high percentage of LWM’s sales in Europe are to QSRs, which unlike U.S. QSRs, rely on dine-in, carry-out or delivery traffic as drive-thru options are limited.
- Shipments-to-date have been soft compared with the prior year, reflecting the effect of the continued spread of COVID-19 and inventory destocking in several key markets.
- The Company reduced contracting of raw potatoes by approximately 20-25 percent for the 2020 crop year, compared with its 2019 crop year purchases.
- The Company expects that it will continue to incur costs as a result of the COVID-19 pandemic’s impact on its manufacturing, supply chain, commercial and functional support operations.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q4 2020
-1.3%
Avg return
Earnings day
-1.2%
Avg return
5 days after
+0.1%
Avg return
30 days after
52%
23 / 44 earnings
Positive
+13.9%
Q2 2023
Best reaction
-32.6%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | -0.6% | -2.8% | — | |
| Q2 2026 | -25.0% | -28.4% | -27.0% | |
| Q1 2026 | +4.5% | +13.0% | +11.7% | |
| Q4 2025 | -2.1% | -2.4% | -1.5% | |
| Q3 2025 | +10.0% | -3.1% | -4.9% | |
| Q2 2025 | -20.6% | -18.6% | -23.2% | |
| Q1 2025 | +2.8% | +6.3% | +20.0% | |
| Q4 2024 | -32.6% | -28.5% | -20.3% | |
| Q3 2024 | -21.1% | -20.5% | -15.9% | |
| Q2 2024 | +1.0% | +2.4% | +1.1% | |
| Q1 2024 | +3.3% | +6.5% | +4.0% | |
| Q4 2023 | -9.7% | -9.4% | -15.1% | |
| Q3 2023 | +3.0% | +3.7% | +7.6% | |
| Q2 2023 | +13.9% | +12.1% | +12.2% | |
| Q1 2023 | +4.9% | +5.2% | +8.4% | |
| Q4 2022 | +6.7% | +7.3% | +7.4% | |
| Q3 2022 | +9.7% | +9.6% | +4.5% | |
| Q2 2022 | +11.3% | +9.8% | -0.6% | |
| Q1 2022 | -9.5% | -11.6% | -7.5% | |
| Q4 2021 | -12.2% | -12.2% | -15.2% | |
| Q3 2021 | -4.1% | -2.8% | -2.4% | |
| Q2 2021 | +0.3% | -2.0% | +3.7% | |
| Q1 2021 | +5.9% | +3.5% | -5.4% | |
| Q4 2020 | -15.2% | -14.8% | -11.4% | |
| Q3 2020 | -12.6% | -9.2% | +2.2% | |
| Q2 2020 | +7.9% | +8.5% | +8.6% | |
| Q1 2020 | +5.9% | +3.2% | +5.4% | |
| Q4 2019 | -6.0% | -4.3% | +2.9% | |
| Q3 2019 | -1.2% | -3.2% | -10.3% | |
| Q2 2019 | -3.3% | -4.5% | -0.8% | |
| Q1 2019 | +9.6% | +13.3% | +17.1% | |
| Q4 2018 | +2.5% | +2.8% | -1.9% | |
| Q3 2018 | +4.0% | +7.3% | +9.5% | |
| Q2 2018 | +2.9% | +3.5% | +1.3% | |
| Q1 2017 | +3.0% | +3.5% | +10.5% | |
| Q1 2018 | +3.0% | +3.5% | +10.5% | |
| Q4 2015 | -1.1% | -2.1% | +0.6% | |
| Q1 2016 | -1.1% | -2.1% | +0.6% | |
| Q4 2017 | -1.1% | -2.1% | +0.6% | |
| Q3 2016 | +3.0% | +2.7% | -0.4% | |
| Q3 2017 | +3.0% | +2.7% | -0.4% | |
| Q4 2016 | +0.0% | +0.9% | +5.9% | |
| Q2 2017 | +0.0% | +0.9% | +5.9% | |
| Q2 2016 | +0.0% | +0.9% | +5.9% |
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